Welsh farmers are warning that the Sustainable Farming Scheme (SFS) risks falling short unless firm funding commitments are secured ahead of next year’s Senedd election, the Farmers’ Union of Wales has said.
Meeting Plaid Cymru leader Rhun ap Iorwerth MS and rural affairs spokesperson Llyr Gruffydd MS, the FUW renewed its manifesto call for a clear financial settlement for the SFS as it moves from design into delivery.
The SFS is due to replace the Basic Payment Scheme in Wales and will form the central mechanism through which future farm support is delivered.
The Welsh government has positioned the scheme as a means of supporting food production alongside environmental outcomes, with payments linked to a set of universal actions farmers must undertake, alongside optional layers for additional activity.
However, farming unions have repeatedly warned that the transition from area-based payments to the new structure carries financial risks for many businesses, particularly livestock farms in less favoured areas, unless funding levels are sufficient and payment rates are maintained in real terms.
The discussions followed a visit to Gallt-y-Celyn, an upland beef and sheep farm near Pentrefoelas, where FUW regional vice-president Alun Owen and his family hosted the Plaid Cymru representatives to discuss the practical implications of policy change on working farms.
At the centre of the union’s concerns is the level of funding allocated to the SFS. The FUW is calling for the current £238 million base-level funding for the universal layer of the scheme to be increased by at least £76 million, based on the Welsh Government’s own assessments, to fully mitigate predicted economic impacts on farm businesses.
FUW president Ian Rickman said funding certainty was now critical. “As the Sustainable Farming Scheme moves from design to delivery, it is crucial that existing, and future Welsh governments provide it with an appropriate budget and financial framework,” he said.
He warned that “Welsh farmers need certainty and adequate support” if the scheme is to deliver for food production, rural communities and the environment.
During discussions on the farm, attention also focused on wider pressures facing Welsh agriculture, including environmental regulation under the Control of Agricultural Pollution rules and how these interact with the requirements of the SFS.
The union pointed to evidence published by the Welsh government last autumn which, despite improvements following engagement and lobbying, still indicated potential reductions in livestock numbers and farm business income. The FUW said this demonstrated that the scheme must be adequately funded if it is to avoid undermining farm viability.
Reflecting on the visit, Mr Owen said it was vital politicians understood the realities facing farming families. “It’s important that politicians understand the pressures our farms face, from environmental regulations to the introduction of the SFS,” he said. He also stressed the need for a five-year financial framework to provide “medium-term economic certainty”.
With the May Senedd election approaching, Mr Rickman said the FUW would continue pressing politicians across all parties for commitments that place Welsh food production and family farms at the heart of future policy.
He warned that without clear assurances on funding, farmers would struggle to invest, adapt and continue producing sustainable food for Wales.
